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- October 31, 2017 at 3:59 pm #413882
Sir here are the two extracts exactly copied from BPP and Kaplan studytext which states director’s disqualification under model articles. Please have a look and then please briefly explain me that on which grounds director can be disqualified under model articles
FROM BPP
1 Disqualification under model articles
Model articles include a number of grounds for disqualification. These include where:
? A person ceases to be a director by virtue of any provision of the Companies Act 2006, or is
prohibited from being a director by law;
? A bankruptcy order is made against that person;
? A composition is made with that person’s creditors generally in satisfaction of that person’s debts;
? A registered medical practitioner, who is treating that person, gives a written opinion to the
company stating that that person has become physically or mentally incapable of acting as a
director and may remain so for more than three months;
? Notification is received by the company from the director that the director is resigning from office,
and such resignation has taken effect in accordance with its terms.
Unless the court approves it, an undischarged bankrupt cannot act as a director nor be concerned directly
or indirectly in the management of a company. If they do continue to act, they become personally liable for
the company’s relevant debts.
In addition to the main grounds of disqualification, the articles may provide that a director shall
automatically vacate office if they are absent from board meetings (without obtaining the leave of the
board) for a specified period (say six months). The effect of this disqualification depends on the words
used.From Kaplan
Disqualification
Model articles – Directors must vacate their office if they become bankrupt.Company Directors (Disqualification) Act 1986 (CDDA 1986)
The CDDA 1986 was introduced to prevent the misuse of the limited liability
status of companies by directors who would set up a new company to carry
on essentially the same business as an old company which had ceased
trading with unpaid debts.A disqualified director cannot be concerned in the management of a
company directly or indirectly or act as a liquidator, receiver or promoter.October 31, 2017 at 5:03 pm #413885Humai, I can add no more to what I have already told you … twice
If BPP have called that “disqualification”, then that’s BPP’s issue
I copied for you … twice … article 18 from the model set and I told you about CDDA
Nowhere within the model articles … I sent you the link to those model articles … nowhere does it mention “disqualification”
So, you’ve put me back in the position where I now tell you for the third time that, in answer to your question, (“Please have a look and then please briefly explain me that on which grounds director can be disqualified under model articles”) there are NO grounds within the model set of articles whereby a director may be disqualified
Please, don’t put me in the position where I have to tell you for a fourth time
I suggest that you could contact BPP and ask them where, in the model articles, it says that a director shall be disqualified … and emphasise that word “disqualified”
I’m sorry to disappoint you … again
OK?
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